Private sector employers attempting to establish preferred veteran hiring practices may be risking claims of discrimination.
Many companies would like to hire veterans because of their unique skill sets, proven work ethic and reliability, but employers may be hesitant to do so out of concern of being sued under Title VII of the Civil Rights Act of 1964. However, Title VII, Section 11 of the Civil Rights Act contains a carve-out that exempts veterans preference processes authorized by state statute.
Key message
Many companies would like to hire veterans because of their unique skill sets, proven work ethic and reliability, but employers may be hesitant to do so out of concern of being sued under Title VII of the Civil Rights Act of 1964. However, Title VII, Section 11 of the Civil Rights Act contains a carve-out that exempts veterans preference processes authorized by state statute.
Discussion points
States are making great strides to improve veteran employability by removing professional licensing barriers and crediting military education and experience. However, employment ultimately depends on employers providing workforce opportunities.
Forty States and the District of Columbia award preference to veterans who are being considered for hire to a public position.
- Unlike government employers, who have been incorporating veterans' hiring preferences since 1944, private employers do not have statutory protection to establish comparable business hiring policies.
Through statute, states can establish policy that enables employers to provided targeted improvements in veteran workforce opportunities.
- Because veterans are overwhelmingly male, the U.S. Equal Employment Opportunity Commission interpreted many veterans preference processes to have a disparate impact on women.
- The statute can authorize, without mandating, a private sector employer to establish a veterans preference process for honorably discharged veterans.
- The veterans preference processes authorized in state statute are not subject to EEOC challenge under the Title VII exception.1 "Nothing contained in this subchapter shall be construed to repeal or modify any federal, state, territorial, or local law creating special rights or preference for veterans."2 The language requires that an employer applies the preference policy uniformly to employment decisions regarding hiring and promotion.
- Statutes allowing private sector veteran preference policies, parallel to those used by state and local governments, can allow employers to compete equitably for veteran talent.
1 U.S. Equal Employment Opportunity Commission, Policy Guidance on Veterans' Preference Under Title VII, Notice N-915.06.
2 42 U.S.C. § 2000e-11 (1982).
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Best Practices
For legislative best practices on providing protection for private sector veterans' hiring policies, view Hiring Protection Best Practices (PDF).
